Chilean Peso depreciation expected to continue in coming months

Saturday, August 23rd 2014 - 06:46 UTC

Full article 7 comments

The US dollar climbed to 584 Chilean Pesos at the end of trading in the Santiago money market, signaling a slow but steady increase for several months now and with prospects of continuing according to analysts. A greenback at 600 Pesos is not far away according to market analysts. Read full article

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Chicureo
This is generally very good news for especially Chilean fruit exporters. Consumers will see obviously inflation, but I think it was needed.
Aug 23rd, 2014 - 08:25 am - Link - Report abuse 0
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Anglotino
It is nice to see the market regulating the economy. When the GFC hit, the Aussie dollar dropped markedly and helped the economy to withstand the slowdown. With Chile's economy slowing recently, this will help to expand domestic production but slow domestic consumption of imports.

On a slightly off topic, is it true that Chile's notes are being replaced by polymer notes like Australia?

Also has Chile thought of redenominating? Reintroducing cents or centavos? So instead of 600 pesos to the dollar it is 6 pesos or 0.60 centavos? Not sure if it is sen on the radar, but it is sometimes undertaken by countries to increase the perceived economic stability of a country as 600. Also it helps with higher amounts, so a computer costs say 6000 pesos or 600 pesos and not 60,000.
Aug 23rd, 2014 - 09:18 am - Link - Report abuse 0
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Chicureo
We still have 1 Peso coins, but normally, the change of a few Pesos is electronically donated at the cash register to charity. I doubt Chile will mess with Peso for some time.
Aug 23rd, 2014 - 04:22 pm - Link - Report abuse 0
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313toBioBio
Cristina leaving in helicopter means the black market for our gas and the oil everyone fries their food in will be exposed, and the resulting shortages. A neighbor of a failed state and you want to call it a slowdown? A$enine.
Aug 24th, 2014 - 01:29 am - Link - Report abuse 0
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JoseAngeldeMonterrey
Chile´s economic policy is right to maintain a competitive currency, it may mean less purchasing power for the majority of Chileans, but it also means more and better paid jobs as exports rise, and a more balanced economy. It makes me wonder when I see Brazil maintaining an overvalued Real, or Argentina trying to keep a strong Peso, it just doesn´t help anyone, it may help “reduce” inflation short term by making imports more accesible, but it creates a lot of problems for manufacturers and farmers trying to compete in global markets.
Aug 24th, 2014 - 09:46 pm - Link - Report abuse 0
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313toBioBio
@5
no need to wonder about argentina's peso. Its givernment is a corrupt den of evil thieves that hate catholics and Argentina.
Aug 25th, 2014 - 11:14 pm - Link - Report abuse 0
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ManRod
now regarding the devaluation of the Chilean Peso, it's no big drama. it has been at a lower position in the past... I think many of our neighbours would kill to have such a stable currency (with the normal breakouts during international crisis turmoils, it always stabilized):

USD
2014: 584
2013: 530
2012: 480
2011: 516
2010: 474
2009: 502
2008: 650
2007: 506
2006: 527
2005: 516
2004: 576
2003: 763 (lowest historical point)
2002: 701
2001: 668
2000: 575
Aug 26th, 2014 - 12:32 pm - Link - Report abuse 0
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